With a ROCE expected of below 6.5% against a WACC of 7.6%, Ferrovial is a value-destroying company. With the £-208m provision (€-237m) registered for the Birmingham contract (BHM) in Services, one can understand that risk management isn’t yet at the utmost best level. As a consequence, we will reduce our target price. And this should trigger a change in recommendation from Add to Reduce.
21 May 2018
Q1 18: hit by the BHM provision, Ferrovial remains value destroying
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Q1 18: hit by the BHM provision, Ferrovial remains value destroying
Ferrovial SE (FER2:WBO) | 0 0 2.1% | Mkt Cap: 12,921m
- Published:
21 May 2018 -
Author:
Felix Brunotte -
Pages:
3
With a ROCE expected of below 6.5% against a WACC of 7.6%, Ferrovial is a value-destroying company. With the £-208m provision (€-237m) registered for the Birmingham contract (BHM) in Services, one can understand that risk management isn’t yet at the utmost best level. As a consequence, we will reduce our target price. And this should trigger a change in recommendation from Add to Reduce.